Destiny Dog Collars uses activity$-$based costing. Destiny's system has the following features:

Read the requirements.

Data table

Manufacturing cost per collar

Requirements

Compute the total estimated cost Destiny will incur to purchase the needed materials and

then assemble and package $35,000$ dog collars. Also compute the cost per collar.

For bidding, Destiny adds a $35\%$ markup to total cost. What total price will the company

bid for the entire Animal Hut order?

Suppose that instead of an ABC system, Destiny has a traditional product costing system

that allocates indirect costs at the rate of $$9\mathrm{.}40$ per direct labor hour. The dog collar order

will require $10,000$ direct labor hours. What total price will Destiny bid using this system's

total cost?

Use your answers to Requirements $2$ and $3$ to explain how ABC can help Destiny make

a better decision about the bid price it will offer Animal Hut.